PwC has released a report that charts how defense agencies in 60 countries allocate their budgets and strategize in the face of security challenges worldwide.
The company said Wednesday it found that many NATO members and partner countries decreased their defense spending in recent years due to fiscal and economic factors as well as challenging military operations.
Moreover, the breadth and depth of global security threats affect efforts in many of the countries studied by PwC to modernize defense systems and sustain readiness programs, the company added.
Tom Modley, global defense network leader at PwC, said he believes terror, cyber and nuclear risks can leave national defense leaders with tough decisions to make in prioritizing institutional reform, acquisition and international cooperation programs.
PwC also found that the U.S.’ and Russia’s military expenditures account for more than 3 percent of their GDPs and that both countries have the capability to deploy forces and technologies when they conduct operations.
The U.S., Canada and the U.K. are among the studied countries that have implemented strategies to increase their defense organizations’ efficiency and save money on agency programs, the report states.
The report added that an increase in terrorist and cyber attacks drive investments in non-conventional offensive and defensive platforms.